The worst credit card offer in the world - $53 credit limit, $247 in fees.

Discussion in 'Open Discussion' started by Febs, Sep 12, 2007.

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  1. Febs

    Febs Established Member

    Aug 15, 2006
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  2. JohnK

    JohnK Veteran Member

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    This has to be a joke! Right?
     
  3. serfty

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  4. NM

    NM
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    And we often complain about Aussie banks finding inventive ways to hit us for with fees. I can't imaging how anyone could buy into a $25 fee to increase your credit limit by $100. I have been receiving regular offers to increase my Citibank credit limit by $10,000 (for no fee). I called tem about it yesterday, and thanked them for reminding me that I wanted to adjust my credit limit on that card and asked for it be changed from $22,750 to $5000 (rather than the $32,750 they were proposing), and they did it there and then while I was on the phone and did not charge me a fee for the service!
     
  5. simongr

    simongr Enthusiast

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    To be fair though NM - you are probably not a sub-prime borrower. This card is designed to give people with zero credit rating an opportunity to build up a credit rating. It is a horrendous card from the fee perspective and I hope I never have to use one. All the fees are clesrly spelled out on the website and once you have paid your initial fees you have a $500 credit limit. Again not brilliant by any stretch but an option for sub-prime borrowers.
     
  6. NM

    NM
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    And I too hope I never need such a card.
     
  7. Alan in CBR

    Alan in CBR Member

    Apr 2, 2004
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    I have a friend who has recently moved to the US. He has citizenship there due to having a parent who was born there, so has a brand spanking new US passport and Social Security Number. Unfortunately his credit history from Australia is useless, so he can't get either a home loan or a normal credit card.

    Last time I spoke to him he was weighing up whether to get one of these rip-off cards just to establish a credit history.
     
  8. NM

    NM
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    Has he got an Aussie Amex card? Someone recently posted a link to the Amex site where they will transfer the card from Australia to USA for you, thus retaining the credit availability.

    Otherwise I would be going for a Visa Debit card as a way of starting a credit reference. The US credit system is somewhat screwed.
     
  9. clifford

    clifford Established Member

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    So why go?
     
  10. Febs

    Febs Established Member

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    So theoretically, what if an Australian CXO of a large company on say, $500k per annum moves to the US and has never lived there before? He wouldn't be able to get a credit card?

    Wouldn't proof of earnings be enough to at least procure some form of semi-decent credit card (and in your friend's situation too)?

    Cheers,
    - Febs.
     
  11. NM

    NM
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    Wasn't enough for one of my work colleagues who moved from UK to USA. He is earning well over US$100K and had a letter from our company confirming his employment and earnings. He could not even get a US-based Corporate Diners Club card after having a UK one for at least 5 years previous. Eventually they gave him one, with a $500 limit.

    He had to start with a Visa Debit Card and then eventually to a $500 credit limit with BoA. He eventually married an American and they used her credit history to get a card in joint names.
     
  12. Dave Noble

    Dave Noble Senior Member

    Oct 10, 2005
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    And this is the sort of reason why I don't agree with the idea of allowing credit agencies to have records beyond what they currently have

    Dave
     
  13. tuapekastar

    tuapekastar Established Member

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    I recall reading probably 15 or so years ago about a well known American cartoonist (can't recall just who), very well paid, very well off, who had avoided credit cards all his life, paying cash for everything, then decided upon retirement that he wanted a CC with a very modest limit...no dice! Couldn't get anything.
     
  14. opusman

    opusman Senior Member

    Jun 27, 2006
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    It's still pathetic but if you actually read the T&C of the card it does clearly say the initial credit limit is $300 - the $53 comes after all the setup fees have been charged to the account.
     
  15. Febs

    Febs Established Member

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    True, but given the market these card providers target ("prey on"?), there's a good chance they couldn't instantly pay back that $247, leaving them with a credit limit of $53.

    Cheers,
    - Febs.
     
  16. Alan in CBR

    Alan in CBR Member

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    Odd question. The job was a good opportunity, the pay was good and the location is nice. Only downside is he might need to spend a few hundred dollars on a rip-off credit card to establish a credit rating. Hardly a deal-breaker.

    Unfortunately not.
     
  17. NM

    NM
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    Better get an application in before he leaves!
     
  18. AnonymousCoward

    AnonymousCoward Established Member

    Dec 5, 2005
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    Well some banks offer to port the necessary information about your banking history across. HSBC is promoting this right now IIRC
     
  19. oz_mark

    oz_mark Enthusiast

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    IIRC HSBC do this through their premier product.
     
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